Canada Agency Buys Starbucks for Hospital

SASKATOON, Saskatchewan -- The Saskatoon Health Region is buying a Starbucks coffee franchise for Royal University Hospital to boost funding for patient care, an official says.

"The business case is strong for a very healthy return, which is making it worth our while," said Sandra Blevins, vice president of the agency. "It's a brand that people are receptive to and one that's having success other places."

Agency officials expect to pay about $35,000 ($25,900) for an operating license from Starbucks and anticipate an annual profit of about $100,000 ($74,000) once it opens in September.

The profits, minus 7 percent in royalties, will be used for patient care, Blevins said.

She estimated more than 5,000 people pass through the mall area of the hospital every day.

The Starbucks will replace a locally owned coffee kiosk called Barista, and another small store also will be closed, she added.